The British Automobile Company is introducing a brand new model called the "London Special." Using the latest forecasting techniques, BAC economists have developed the following demand function for the "London Special":
QD = 1,200,000 - 40P
What is the point price elasticity of demand at prices of:
(b) $10,000© BrainMass Inc. brainmass.com December 24, 2021, 8:53 pm ad1c9bdddf
dQ/dP = -40
The price elasticity of demand is given by (dQ/dP)(P/Q) ...
Point price elasticity of demand is examined. A complete, neat and step-by-step solution is provided.